Comparable orders in the third quarter jumped 40% to $12.1 billion, the Swiss manufacturer said Tuesday. That beat an average analyst estimates of US$11.4 billion.

Separately, the company is pushing on with acquisitions, setting up a joint venture with Mitsubishi Electric Corp for a low-voltage power distribution business in Japan. ABB will pay around US$495 million for a 51% stake in the unit.

The factory automation firm has been profiting from rising investments in data centres needed to feed a surge in artificial intelligence applications. ABB makes the transformers that enable power grids to supply the centres’ substantial energy needs. 

Orders in that unit were the third quarter’s key growth engine, accounting for 70% of new business. The motion business grew by 14% while automation was stable. 

ABB also made a small upward tweak to its revenue forecast and now sees comparable revenue growth in the ”low teens” range. Previously it said revenue might rise in the low double-digit to low teens range. 

Year to date, shares have gained around 26% through to Monday’s close. Still, given its exposure to the artificial intelligence industry and build-out, ABB has been caught in the recent faltering global AI trade that’s weighed on markets. Since the start of the month, the stock has declined 7%. 

Earlier this year ABB bought British industrial components company Rotork Plc for an enterprise value of around US$5.5 billion to expand its electrification and automation businesses, its biggest ever acquisition. 

ABB chief executive officer Morten Wierod has streamlined its portfolio since taking over nearly two years ago to tap into burgeoning investment in the data centres underpinning the AI boom. The Zurich-based manufacturer last year sold its robotics division for more than US$5 billion and focused on targeted acquisitions.

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